State Tax Refund Taxable (Married; Filing Jointly)

diy_tax_guy · ‎February 6, 2019

My wife and I just got married in 2018. She took the standard deduction in the 2017 tax return, while I benefitted from itemized deductions. For this years tax return (2018 tax year), we're filing jointly, I was wondering if only my state refund from 2017 is taxable (since I itemized my deductions) while my wife's state refund is not.

Thanks in advance for the help!

MargaretL · ‎February 6, 2019

You are correct, only your state refund will be taxable since you itemized your deductions last year. You don't even have to report your wife's 1099-G since she did NOT itemize her deductions. Please see here for details.

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taxnewbie · ‎April 12, 2019

Hi there - I'm in a similar situation and was hoping the two of you can kindly share your expertise!

We got married in 2017. For 2017, we filed jointly and took the itemized deduction. In 2018, I received form 1099-G for my state tax refund, which was for my state tax return in 2015 (when I filed taxes single). In 2015 & 2016, I took the standard deduction on my tax return (filed single).

Is the state tax refund (for 2015 tax year) I received taxable for 2018 taxes?

Thank you for your help!

tagteam · ‎April 12, 2019

@taxnewbie wrote:
Is the state tax refund (for 2015 tax year) I received taxable for 2018 taxes?

No. Per the link in the answer by @MargaretL, you don't report any of the refund as income if you didn’t itemize your deductions on your federal tax return for the tax year that generated the refund.

taxnewbie · ‎April 12, 2019

THANK YOU SO MUCH!

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